Misunderstanding

The taxpayer applied to be allowed to appeal out of time against assessments for the years 1997/98 and 1998/99. HMRC had amended the relevant returns in May 2000.

The taxpayer explained she and her husband left the UK in March 2000 to move to Spain unaware her tax affairs were under enquiry. The Revenue was told of their move overseas in January 2001 but continued to try to contact the taxpayer in UK.

The department eventually located her in Spain and obtained access to her Spanish bank account withdrawing money without the taxpayer’s knowledge which the authorities said was due for 2000/01 and 2001/02.

The taxpayer contacted HMRC in July 2008 and received confirmation that the tax had been taken from her account incorrectly – but the department said it would not repay the money until tax was settled for 1997/98 and 1998/99.

The taxpayer claimed...